Stock Screen Combining Seven Down Days, Recent Gains, and Buying Activity

Summary

This post outlines an equity screen combining three signals: reported buying activity above a threshold, seven consecutive sessions with falling closing prices, and a positive but capped return over the prior ten sessions. The intended interpretation is to find stocks with recent net gains and reported capital interest despite a prolonged short-term decline. A later version of the proposed selection logic adds valuation filters based on price-to-earnings and price-to-book measures. The post also includes a sample calculation outline for these conditions.

The author notes that consecutive declines may indicate further downside, and that reported buying interest does not ensure continued demand. The screen is described without backtest results, a defined exit rule, or evidence that the signals predict returns. The sample code’s data fields and calculations may not align cleanly with the stated concepts, so its logic would need verification before research or use. Suggested extensions include adding valuation measures and examining longer observation periods.

Key ideas

• The screen combines seven falling sessions with a positive, limited ten-session return and a buying-activity filter.
• A proposed expanded version adds valuation thresholds.
• The post recognizes that buying-activity data can be uncertain and that repeated declines may signal continued weakness.
• No performance testing or exit method is provided, and the example calculations need validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.